Japan’s industrial production fell by 2.2% year-on-year in November, slightly worse than the previous decline of 2.1%. This update comes amid ongoing market changes and economic uncertainties. With global market shifts, the Australian Dollar has risen as the US Dollar weakens due to increased risk aversion. Additionally, Gold has reached a new all-time high, driven by geopolitical risks and new tariff threats from the US.

Meme Coins Impact

In response to these tariff threats aimed at Europe, major currency pairs like EUR/USD and GBP/USD have strengthened. On the other hand, meme coins such as Dogecoin and Shiba Inu saw a drop of about 3%, mirroring Bitcoin’s decline. The markets reacted as equities fell and Treasuries gained interest, while the US Dollar softened except in safe havens. This highlights how tariffs influence currency performance and market perspectives. Brokers for trading in 2026 are being assessed, highlighting top options for Forex, CFDs, and regional brokers. These evaluations help cost-conscious and leverage-seeking traders. This information is for educational purposes only and should not be taken as personal financial advice. It emphasizes the risks of trading and investing, encouraging individuals to do their research.

Expectations of Continued Volatility

Due to the current flight to safety, we can expect ongoing high volatility in the weeks ahead. The CBOE Volatility Index (VIX) spiked above 30 during similar trade disputes in early 2025, and current geopolitical issues may lead to a repeat. Traders might consider buying VIX call options or VIX futures to hedge against or profit from increased market fear. Gold stands to gain from this risk-off environment, and we anticipate this trend will continue. Central banks added over 800 tonnes to global reserves by the end of 2025, supporting these high prices. Bullish strategies, like buying call options on gold futures, seem beneficial as long as US-EU tariff threats persist. The US Dollar is under significant pressure, creating chances for bearish positions. With the US national debt surpassing $35 trillion in late 2025, its status as a safe haven is being questioned due to self-imposed trade disputes. Considering buying put options on dollar-tracking ETFs or shorting dollar index futures may be wise. As a result, currencies like the Euro and Pound Sterling are benefiting. Fourth-quarter 2025 European inflation data showed stability around 2.4%, leaving the European Central Bank little reason to weaken its currency. This makes long positions in EUR/USD and GBP/USD appealing, with call options for risk management in the current volatility. Equity markets remain at risk of further downturns as tariff threats directly impact corporate earnings. With profit warnings surfacing from several major industrial firms in late 2025, these new tensions act as a clear bearish catalyst. Purchasing put options on major indices like the S&P 500 can provide effective downside protection for current portfolios. Create your live VT Markets account and start trading now.

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